On the NYSE,limit Order Prices Receive Preference in Establishing the Posted

question 16

Multiple Choice

On the NYSE,limit order prices receive preference in establishing the posted bid and ask prices if they are more favorable than the specialist's.Therefore,

• A)a specialist must fill a limit order,if possible,from his own account before trading the flow of public orders.
• B)specialists must fill a limit order,if possible,from the flow of public orders before trading for his own account.
• C)a specialist must change his posted bid and ask prices to reflect the available limit orders.
• D)none of the options

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Definitions:

Periodic Inventory System

An inventory accounting system where the inventory count is physically conducted at specific periods, leading to adjustments in the accounts at each period end.

Inventory Cost

The total cost associated with acquiring, storing, and preparing goods for sale, including purchase price, storage, and handling costs.

Direct Method

A way of preparing the cash flow statement where actual cash flows from operating activities are listed directly.

Periodic Inventory System

An accounting method where inventory is physically counted and valued at specific intervals, typically at the end of an accounting period.